Brazilian football legend Ronaldinho has sparked speculation about the possibility of launching a cryptocurrency after warning fans about fake meme coins using his name.
Celebrity meme coins have recently become a controversial topic in the cryptocurrency space, with many reports of manipulation and fraud.
Ronaldinho hints at meme coin launch
In a recent post on X (Twitter), the football star warned the cryptocurrency community about fraudulent tokens and hinted at "big news" to come. While this announcement has excited some fans, others have expressed skepticism.
"Hello everyone! Be careful with the fake memecoin using my name here. Remember I don't have any official token yet... For the entire crypto community: stay tuned because we'll have big news here very soon," the post read.
Ronaldinho's post comes as the popularity of meme coins has waned and investors have shifted towards altcoins with real-world value. However, meme coins remain a dominant force in cryptocurrency, often reflecting broader market sentiment.
However, concerns about fraud and rug pulls remain high. Cryptocurrency analyst Michael van de Poppe responded skeptically, suggesting that Ronaldinho should focus on protecting retail investors rather than launching his own coin.
"I guess the big news is that you've bought Bitcoin instead of launching your own meme coin because you want to protect retail crypto users and not chase money," the analyst wrote.
Another user urged the football star to reconsider, warning that anyone he collaborates with to launch a token could exploit his reputation while leaving investors with significant losses.
Given his past controversies in this space, the caution surrounding Ronaldinho's potential meme coin is not unfounded. Similarly, a recent report revealed how hackers impersonated the Saudi Prince to promote a fraudulent meme coin, reflecting the associated risks.
Risks of celebrity-backed meme coins and market manipulation
Furthermore, historical data shows that tokens backed by celebrities have a poor track record. Meme coins associated with figures like Donald Trump, Iggy Azalea, and Andrew Tate have suffered significant losses, with some declining nearly 80% from their ATH.
Research also indicates that 97% of meme coins fail, with only 15 out of 1.7 million being successful. This highlights the precarious nature of these speculative assets. Additionally, the research reveals that 76% of meme coins promoted by celebrities lose over 90% of their value within three months, leaving investors with significant losses.
Success rate of Meme Coins backed by celebrities. Source: CoinWire ResearchThe skepticism is not limited to individual traders, as even prominent figures in the cryptocurrency industry have expressed concerns. Former Binance CEO Changpeng Zhao has publicly criticized meme coins, stating that they lack long-term utility and contribute to a negative perception of the industry.
His comments have sparked a debate about cryptocurrency standards, with some agreeing that meme coins promote speculative trading and fraud. However, others defend them as a cultural phenomenon within the cryptocurrency space.
Adding to the concerns, a recent study revealed that over 60% of Pump.fun meme coin traders are losing money. This reinforces the notion that these tokens are high-risk investments.
Despite the risks, meme coins remain an integral part of the cryptocurrency market. The U.S. Securities and Exchange Commission (SEC) recently clarified that meme coins are not considered securities, providing some regulatory certainty.
Ronaldinho's involvement in the meme coin space remains uncertain. While his announcement has generated attention, the backlash has highlighted the broader issue of celebrity participation in cryptocurrency projects. As history has shown, most tokens backed by celebrities have ended in disaster, raising questions about whether Ronaldinho's potential project would be any different.
